Correlation Between GraniteShares 15x and SPDR SP
Can any of the company-specific risk be diversified away by investing in both GraniteShares 15x and SPDR SP at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining GraniteShares 15x and SPDR SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GraniteShares 15x Long and SPDR SP Retail, you can compare the effects of market volatilities on GraniteShares 15x and SPDR SP and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in GraniteShares 15x with a short position of SPDR SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 15x and SPDR SP.
Diversification Opportunities for GraniteShares 15x and SPDR SP
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GraniteShares and SPDR is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and SPDR SP Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SP Retail and GraniteShares 15x is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on GraniteShares 15x Long are associated (or correlated) with SPDR SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SP Retail has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and SPDR SP go up and down completely randomly.
Pair Corralation between GraniteShares 15x and SPDR SP
Given the investment horizon of 90 days GraniteShares 15x Long is expected to under-perform the SPDR SP. In addition to that, GraniteShares 15x is 3.92 times more volatile than SPDR SP Retail. It trades about -0.06 of its total potential returns per unit of risk. SPDR SP Retail is currently generating about 0.34 per unit of volatility. If you would invest 7,644 in SPDR SP Retail on August 28, 2024 and sell it today you would earn a total of 757.00 from holding SPDR SP Retail or generate 9.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares 15x Long vs. SPDR SP Retail
Performance |
| Timeline |
| GraniteShares 15x Long |
| SPDR SP Retail |
GraniteShares 15x and SPDR SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares 15x and SPDR SP
The main advantage of trading using opposite GraniteShares 15x and SPDR SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 15x position performs unexpectedly, SPDR SP can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SPDR SP will offset losses from the drop in SPDR SP's long position.| GraniteShares 15x vs. Direxion Daily MSFT | GraniteShares 15x vs. Direxion Daily GOOGL | GraniteShares 15x vs. AXS 125X NVDA | GraniteShares 15x vs. Direxion Shares ETF |
| SPDR SP vs. SPDR SP Homebuilders | SPDR SP vs. Consumer Discretionary Select | SPDR SP vs. SPDR SP Metals | SPDR SP vs. Industrial Select Sector |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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